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| 8-K - 8-K - ENTERGY CORP /DE/ | a01717.htm |
Entergy
639 Loyola Avenue
New Orleans, LA 70113
Exhibit 99.1
Date: | April 26, 2017 | ||
For Release: | Immediately | ||
Contact: | Kay Jones (Media) (504) 576-4238 cjone22@entergy.com | David Borde (Investor Relations) (504) 576-5668 dborde@entergy.com | |
Entergy Reports First Quarter Earnings
First quarter results in line with expectations; 2017 guidance affirmed
NEW ORLEANS - Entergy Corporation (NYSE: ETR) reported first quarter 2017 earnings per share of 46 cents on an as-reported basis and 99 cents on an operational basis, including an estimated negative (16) cents effect from unusually mild weather.
“Entergy’s first quarter results are in line with our expectations and we are affirming our full-year guidance,” said Entergy Chairman and Chief Executive Officer Leo Denault. “These results are a good start to another important year for Entergy as we build on the momentum from last year’s achievements. We are confident that we have the right strategy, leadership and workforce to deliver on our operational plan and financial outlooks.”
Business highlights included the following:
• | The sale of EWC’s FitzPatrick plant to Exelon Generation was completed on March 31, 2017. |
• | The settlement on Indian Point is being implemented on the agreed-upon schedule. |
Table of Contents Page |
News Release1 Appendices9 A: Consolidated Results and Special Items10 B: Variance Analysis12 C: Utility Financial and Operational Measures14 D: EWC Financial and Operational Measures16 E: Consolidated Financial Measures17 F: Definitions, Abbreviations and Acronyms18 G: GAAP to Non-GAAP Reconciliations23 Financial Statements26 |
• | ELL signed a purchase and sale agreement for an approximately 360 megawatt gas-fired CT. Washington Parish Energy Center One, LLC, a subsidiary of Calpine Corporation, will construct the plant and ELL will purchase the plant once it is complete. The transaction is expected to close in 2021. |
• | EAI and ELL made primary selections from proposals offered in response to their RFPs for renewable resources. |
• | The PUCT issued a final order in our TCRF filing. |
• | Moody’s upgraded Entergy Corporation’s issuer rating to Baa2 from Baa3. |
• | Entergy was included in Corporate Responsibility Magazine’s annual list of the 100 Best Corporate Citizens. |
Consolidated Earnings (GAAP and Non-GAAP Measures) | |||
First Quarter 2017 vs. 2016 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items) | |||
First Quarter | |||
2017 | 2016 | Change | |
As-Reported Earnings ($ in millions) | 82.6 | 230.0 | (147.4) |
Less Special Items | (95.1) | (12.9) | (82.2) |
Operational Earnings | 177.7 | 242.8 | (65.1) |
Estimated Weather Impact (after-tax) | (29.2) | (25.4) | (3.8) |
As-Reported Earnings (per share in $) | 0.46 | 1.28 | (0.82) |
Less Special Items | (0.53) | (0.07) | (0.46) |
Operational Earnings | 0.99 | 1.35 | (0.36) |
Estimated Weather Impact | (0.16) | (0.14) | (0.02) |
Totals may not foot due to rounding
Consolidated Results
For first quarter 2017, the company reported earnings of 46 cents per share on an as-reported basis and EPS of 99 cents on an operational basis, as compared to first quarter 2016 EPS of $1.28 on an as-reported basis and operational EPS of $1.35.
Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly variances is provided in Appendix B.
Utility, Parent & Other Results
For first quarter 2017, Utility EPS were 92 cents on both an as-reported basis and an operational basis. In first quarter 2016, Utility as-reported and operational EPS were $1.09. The current period results reflected the effects of new rate actions to recover investments that benefit customers. However, the impacts of higher operating expenses and weather led to the overall decline in results.
Net revenue increased quarter-over-quarter, driven by regulatory actions across the utility jurisdictions, including EAI’s 2017 FRP rate changes. Sales volume declined due to lower residential and commercial sales across the service territory, including the effects of weather.
Industrial sales growth was positive. Growth from new and expanding customers was partly offset by lower sales to existing customers, primarily in the refining segment. Sales to refiners were down on customer outages, which were expected.
Utility non-fuel O&M increased quarter-over-quarter. First quarter 2016 included a favorable deferral of previously-expensed costs which resulted from EAI’s rate case order. In 2017, fossil spending was higher, primarily related to the acquisition of Union in March of last year. Higher spending on nuclear operations was largely offset by lower regulatory compliance costs at ANO.
In first quarter 2017, Parent & Other reported a loss of (30) cents per share on both an as-reported basis and an operational basis. In first quarter 2016, Parent & Other reported an as-reported and operational loss of (25) cents per share.
On a combined basis, Utility, Parent & Other EPS were 62 cents on an as-reported basis and 83 cents on an adjusted basis. In first quarter 2016, Utility, Parent & Other as-reported EPS were 84 cents and adjusted EPS were 95 cents. Adjusted earnings exclude special items and the effects of weather and normalize income taxes.
Appendix C contains additional details on Utility financial and operational measures, including a schedule of Utility, Parent & Other adjusted earnings and EPS.
Entergy Wholesale Commodities Results
For first quarter 2017, EWC recorded a loss of (16) cents per share on an as-reported basis and operational EPS of 37 cents. For the comparable period in 2016, EWC earned 44 cents per share on an as-reported basis and operational EPS of 51 cents.
The decrease in EWC’s as-reported results was due largely to impairments and other items recorded as a result of strategic decisions for the wholesale business. Impairments were for fuel purchases and refueling outage costs as well as capital spending. First quarter 2017 as-reported results also included items which resulted from the FitzPatrick transaction, including a gain on that sale and an income tax benefit. All of these were considered special items and excluded from operational earnings.
Excluding the items above, earnings from FitzPatrick’s operations declined. The plant was sold on March 31, 2017.
From the remaining plants, net revenue declined due to lower power prices. This was partially offset by lower nuclear fuel costs, which were affected by impairments. Non-fuel O&M reflected lower refueling outage expense, which was also affected by impairments. Decommissioning expense increased due primarily to the transfer of Indian Point 3 liability from NYPA. This was partially offset by an increase in other income, which was due to earnings on decommissioning trusts.
Appendix D contains additional details on EWC financial and operational measures, including a schedule of EWC operational adjusted EBITDA calculations.
Earnings Guidance
Entergy affirmed its 2017 operational guidance in the range of $4.75 to $5.35 per share and Utility, Parent & Other adjusted EPS guidance range of $4.25 to $4.55. See webcast presentation slides for additional details.
The company has provided 2017 earnings guidance with regard to the non-GAAP measures of operational EPS and Utility, Parent & Other adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items as described below under “Non-GAAP Financial Measures”. The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot reasonably estimate all of the special items that may occur for the periods presented. The company’s current estimate for special items in 2017 relates to the decisions to close or sell its merchant nuclear plants; those anticipated special items are expected to decrease as-reported EPS by approximately $2.10 per share. Other special items may occur during the periods presented, the impact of which cannot reasonably be estimated at this time.
Earnings Teleconference
A teleconference will be held at 10 a.m. Central Time on Wednesday, April 26, 2017, to discuss Entergy’s quarterly earnings announcement and the company’s financial performance. The teleconference may be accessed by visiting Entergy’s website at www.entergy.com or by dialing 844-309-6569, conference ID 56943997, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy’s website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy’s website at www.entergy.com and by telephone. The telephone replay will be available through May 3, 2017, by dialing 855-859-2056, conference ID 56943997. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Entergy Corporation’s common stock is listed on the New York and Chicago stock exchanges under the symbol “ETR.”
Details regarding Entergy’s results of operations, regulatory proceedings and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast slide presentation. Both documents are available on Entergy’s Investor Relations website at www.entergy.com/investor_relations and on Entergy’s Investor Relations mobile web app at iretr.com.
For definitions of certain operational measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see
Appendix F and Appendix G.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this release and the presentation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP measures in this news release could differ from GAAP only in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of “special items.” Special items are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairment, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as Entergy’s recent decisions to shut down or sell its merchant nuclear plants. Operational earnings per share are presented for each of Entergy’s reportable business segments as well as on a consolidated basis. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; operational net revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as “operational” would exclude the effect of special items as defined above. Entergy also reports Utility, Parent & Other adjusted earnings and earnings per share, which exclude from GAAP earnings the special items described above and weather and normalizes tax expense for the periods presented. Management believes that financial metrics calculated using operational earnings or otherwise adjusted as described above could provide useful information to investors in evaluating the ongoing results of Entergy’s businesses and could assist investors in comparing Entergy’s operating performance to the operating performance of others in the Utility sector.
Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; debt to operational adjusted EBITDA, excluding securitization debt; operational FFO to debt ratio, excluding securitization debt; are measures Entergy uses internally for management and board discussions and cash budgeting and performance monitoring activities to gauge the overall strength of its business. Entergy believes the above data could provide useful information to investors in evaluating Entergy’s ongoing financial results and flexibility, and could assist investors in comparing Entergy’s credit and liquidity to the credit and liquidity of others in the Utility sector.
The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy’s operations that, when viewed with Entergy’s GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, could provide a more complete understanding of factors and trends affecting Entergy’s business. Investors are strongly encouraged to review Entergy’s consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. Non-GAAP financial measures are not standardized; therefore, it might
not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time, Entergy Corporation makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy’s 2017 earnings guidance, its current financial and operational outlook, and other statements of Entergy’s plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy’s nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
###
First Quarter 2017 Earnings Release Appendices and Financial Statements
Appendices
Seven appendices are presented in this section as follows:
• | A: Consolidated Results and Special Items |
• | B: Variance Analysis |
• | C: Utility Financial and Operational Measures |
• | D: EWC Financial and Operational Measures |
• | E: Consolidated Financial Measures |
• | F: Definitions, Abbreviations and Acronyms |
• | G: GAAP to Non-GAAP Reconciliations |
Also included in this earnings release are:
• | Financial Statements |
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated EPS, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures First Quarter 2017 vs. 2016 (See Appendix A-3 and Appendix A-4 for details on special items) | |||
(Per share in $) | |||
First Quarter | |||
2017 | 2016 | Change | |
As-reported | |||
Utility | 0.92 | 1.09 | (0.17) |
Parent & Other | (0.30) | (0.25) | (0.05) |
EWC | (0.16) | 0.44 | (0.60) |
Consolidated as-reported earnings | 0.46 | 1.28 | (0.82) |
Less special items | |||
Utility | — | — | — |
Parent & Other | — | — | — |
EWC | (0.53) | (0.07) | (0.46) |
Consolidated special items | (0.53) | (0.07) | (0.46) |
Operational | |||
Utility | 0.92 | 1.09 | (0.17) |
Parent & Other | (0.30) | (0.25) | (0.05) |
EWC | 0.37 | 0.51 | (0.14) |
Consolidated operational earnings | 0.99 | 1.35 | (0.36) |
Estimated weather impact | (0.16) | (0.14) | (0.02) |
Totals may not foot due to rounding
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for special items by driver.
Appendix A-2 provides the components of OCF contributed by each business.
Appendix A-2: Consolidated Operating Cash Flow | |||
First Quarter 2017 vs. 2016 | |||
($ in millions) | |||
First Quarter | |||
2017 | 2016 | Change | |
Utility | 558 | 459 | 99 |
Parent & Other | (176) | (62) | (114) |
EWC | 147 | 136 | 11 |
Total OCF | 529 | 533 | (3) |
Totals may not foot due to rounding
OCF was relatively flat quarter-over-quarter. Reduced cash flow from the timing of recovery for fuel and purchased power at the Utility and lower net revenue at EWC (excluding revenue from the FitzPatrick reimbursement agreement) were largely offset by cash flow from income taxes and reduced spending on Vermont Yankee decommissioning. Intercompany income tax payments also contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both a net income basis and an EPS basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational EPS is considered a non-GAAP measure.
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS) | |||||
First Quarter 2017 vs. 2016 | |||||
First Quarter | |||||
2017 | 2016 | Change | |||
(Pre-tax except for income tax effects and total, $ in millions) | |||||
EWC | |||||
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants | (230.9) | (19.9) | (211.0) | ||
Gain on the sale of FitzPatrick | 16.3 | — | 16.3 | ||
Income tax effect on adjustments above (a) | 75.1 | 7.0 | 68.1 | ||
Income tax benefit resulting from FitzPatrick transaction | 44.5 | — | 44.5 | ||
Total EWC | (95.1) | (12.9) | (82.2) | ||
Total special items | (95.1) | (12.9) | (82.2) | ||
(After-tax, per share in $) (b) | |||||
EWC | |||||
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants | (0.84) | (0.07) | (0.77) | ||
Gain on the sale of FitzPatrick | 0.06 | — | 0.06 | ||
Income tax benefit resulting from FitzPatrick transaction | 0.25 | — | 0.25 | ||
Total EWC | (0.53) | (0.07) | (0.46) | ||
Total special items | (0.53) | (0.07) | (0.46) | ||
Totals may not foot due to rounding
(a) | Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply |
(b) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the fully diluted average shares outstanding for the period |
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | |||
First Quarter 2017 vs. 2016 | |||
(Pre-tax except for Income taxes and Total, $ in millions) | |||
First Quarter | |||
2017 | 2016 | Change | |
EWC | |||
Net revenue | 90.6 | — | 90.6 |
Non-fuel O&M | (120.3) | (11.5) | (108.8) |
Taxes other than income taxes | (4.1) | (1.0) | (3.1) |
Asset write-off and impairments | (211.8) | (7.4) | (204.4) |
Gain on sale of assets | 16.3 | — | 16.3 |
Miscellaneous net (other income) | 14.6 | — | 14.6 |
Income taxes (c) | 119.6 | 7.0 | 112.6 |
Total EWC | (95.1) | (12.9) | (82.2) |
Total special items (after-tax) | (95.1) | (12.9) | (82.2) |
Totals may not foot due to rounding
(c) | Income taxes include the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item as well as an income tax benefit which resulted from the FitzPatrick transaction |
B: Variance Analysis
Appendix B provides details of as-reported and operational earnings variance analysis for Utility, Parent & Other, EWC and Consolidated.
Appendix B: As-Reported and Operational EPS Variance Analysis (d) | |||||||||||
First Quarter 2017 vs. 2016 | |||||||||||
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
Utility | Parent & Other | EWC | Consolidated | ||||||||
As-Reported | Opera-tional | As-Reported | Opera-tional | As- Reported | Opera-tional | As- Reported | Opera- tional | ||||
2016 earnings | 1.09 | 1.09 | (0.25) | (0.25) | 0.44 | 0.51 | 1.28 | 1.35 | |||
Other income (deductions)-other | 0.03 | 0.03 | — | — | 0.11 | 0.06 | (e) | 0.14 | 0.09 | ||
Preferred dividend requirements | 0.01 | 0.01 | — | — | — | — | 0.01 | 0.01 | |||
Interest expense and other charges | 0.02 | 0.02 | (0.01) | (0.01) | — | — | 0.01 | 0.01 | |||
Asset write-offs and impairments | — | — | — | — | (0.74) | — | (f) | (0.74) | — | ||
Gain on sale of assets | — | — | — | — | 0.06 | — | (g) | 0.06 | — | ||
Taxes other than income taxes | (0.03) | (0.03) | — | — | 0.01 | 0.02 | (0.02) | (0.01) | |||
Depreciation/ amortization expense | (0.05) | (0.05) | (h) | — | — | 0.01 | 0.01 | (0.04) | (0.04) | ||
Non-fuel O&M | (0.20) | (0.20) | (i) | — | — | (0.25) | 0.15 | (j) | (0.45) | (0.05) | |
Income taxes - other | (0.04) | (0.04) | (0.04) | (0.04) | 0.26 | 0.01 | (k) | 0.18 | (0.07) | ||
Net revenue | 0.10 | 0.10 | (l) | — | — | 0.10 | (0.23) | (m) | 0.20 | (0.13) | |
Decommissioning expense | (0.01) | (0.01) | — | — | (0.16) | (0.16) | (n) | (0.17) | (0.17) | ||
2017 earnings | 0.92 | 0.92 | (0.30) | (0.30) | (0.16) | 0.37 | 0.46 | 0.99 | |||
Totals may not foot due to rounding
See appendix in the webcast slide presentation for additional details on EWC line item variances.
(d) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and then dividing by the fully diluted average shares outstanding for the period; income taxes - other represents income tax differences other than the tax effect of individual line items. |
(e) | The increase was driven largely by realized earnings on decommissioning trust funds. Approximately 5 cents, classified as special item, was from gains on the receipt of nuclear decommissioning trust funds from NYPA in January 2017. |
(f) | The decrease was due to an increase in impairments recorded for refueling outage costs, nuclear fuel purchases and capital expenditures (classified as special items and excluded from operational results). |
(g) | The increase was due to a gain on the sale of FitzPatrick (classified as a special item and excluded from operational results). |
(h) | The decrease was due largely to additions to plant in service, including the Union Power Station acquired in March 2016. |
(i) | The decrease was due to several drivers. In first quarter 2016, EAI recorded a deferral for $18 million (pre-tax) for previously-expensed costs related to post Fukushima and flood barrier compliance. Fossil spending was higher for Union expenses (Union was acquired in March 2016) and overall higher scope of work. Compensation and benefits expense increased due partly to a revision to estimated incentive compensation expense in first quarter 2016. Expense associated with loss reserves also increased. Spending for nuclear operations was higher, but was largely offset by lower spending associated with regulatory compliance costs at ANO. |
(j) | The as-reported decrease reflected higher expenses related to the agreement to sell FitzPatrick and other costs which resulted from decisions to close or sell EWC’s nuclear plants (classified as a special item and excluded from operational results). Partially offsetting was lower refueling outage expense, which was affected by impairments. |
(k) | The as-reported increase resulted from the re-determination of FitzPatrick’s tax basis as a result of the sale of the plant (classified as a special item and excluded from operational results). |
Utility As-Reported Net Revenue Variance Analysis 2017 vs. 2016 ($ EPS) | |
First Quarter | |
Estimated weather | (0.02) |
Sales growth/pricing | 0.09 |
Other | 0.03 |
Total | 0.10 |
(l) | The increase reflected full-quarter effects from the first quarter 2016 EAI rate case and rate actions associated with the Union acquisition (a portion of those increases was for Union operating expenses) as well as EAI’s FRP rate increase in 2017. EMI’s 2016 FRP and ETI’s TCRF rate changes also contributed. In addition, in first quarter 2016 EAI recorded a charge to reflect the estimated impact from a FERC order on opportunity sales case. Partially offsetting was lower volume, including the effects of weather. |
(m) | The as-reported increase included cost reimbursements from the buyer related to the FitzPatrick sale (classified as special items and excluded from operational results). Operational revenue from FitzPatrick was also lower. Pricing for nuclear assets was also a factor in the decline. Partially offsetting was lower fuel expense, which was affected by impairments. |
(n) | The decrease resulted primarily from the establishment of decommissioning liabilities at Indian Point 3 and FitzPatrick in August 2016 (resulted from agreement with NYPA to transfer decommissioning liabilities and associated trusts to Entergy). Revisions to the estimated decommissioning cost liabilities for Indian Point and Palisades in the fourth quarter 2016 also contributed to the decrease. |
C: Utility Financial and Operational Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS, which excludes the effects of special items and weather and normalizes income tax expense.
Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures | ||||||
First Quarter 2017 vs. 2016 (See Appendix A for details on special items) | ||||||
First Quarter | ||||||
2017 | 2016 | Change | ||||
($ in millions) | ||||||
Utility as-reported earnings | 164.7 | 194.9 | (30.2) | |||
Parent & Other as-reported earnings (loss) | (54.4) | (44.0) | (10.4) | |||
UP&O as-reported earnings | 110.3 | 151.0 | (40.6) | |||
Less: | ||||||
Special items | — | — | — | |||
Weather | (47.5) | (41.3) | (6.2) | |||
Tax effect of weather (o) | 18.3 | 15.9 | 2.4 | |||
Estimated weather impact (after-tax) | (29.2) | (25.4) | (3.8) | |||
Other income tax items | (9.4) | 6.0 | (15.4) | |||
UP&O adjusted earnings | 148.9 | 170.3 | (21.4) | |||
(After tax, per share in $) | ||||||
UP&O as-reported earnings | 0.62 | 0.84 | (0.22) | |||
Less: | ||||||
Special items | — | — | — | |||
Weather | (0.16) | (0.14) | (0.02) | |||
Other income tax items | (0.05) | 0.03 | (0.08) | |||
UP&O adjusted earnings | 0.83 | 0.95 | (0.12) | |||
Totals may not foot due to rounding
(o) | Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply to those adjustments |
Appendix C-2 provides a comparative summary of Utility operational and financial measures.
Appendix C-2: Utility Operational and Financial Measures | ||||
First Quarter 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||
First Quarter | ||||
2017 | 2016 | % Change | % Weather Adjusted (p) | |
GWh billed | ||||
Residential | 7,637 | 8,137 | (6.1) | (4.2) |
Commercial | 6,439 | 6,511 | (1.1) | (1.7) |
Governmental | 593 | 600 | (1.1) | (1.6) |
Industrial | 11,117 | 11,055 | 0.6 | 0.6 |
Total retail sales | 25,786 | 26,303 | (2.0) | (1.6) |
Wholesale | 3,022 | 3,140 | (3.8) | |
Total sales | 28,808 | 29,443 | (2.2) | |
Number of electric retail customers | ||||
Residential | 2,469,879 | 2,443,022 | 1.1 | |
Commercial | 355,138 | 350,136 | 1.4 | |
Governmental | 18,229 | 17,686 | 3.1 | |
Industrial | 41,043 | 40,823 | 0.5 | |
Total retail customers | 2,884,289 | 2,851,667 | 1.1 | |
Net revenue ($ in millions) | 1,404 | 1,375 | 2.1 | |
Non-fuel O&M per MWh | 20.97 | $18.56 | 13.0 | |
Appendix C-3: Utility Operational Measures | ||||
Last Twelve Months Retail Sales | ||||
First Quarter | ||||
2017 | 2016 | % Change | % Weather Adjusted (p) | |
GWh billed | ||||
Residential | 34,612 | 34,773 | (0.5) | (1.1) |
Commercial | 29,125 | 29,138 | — | (0.9) |
Governmental | 2,540 | 2,522 | 0.7 | 0.6 |
Industrial | 45,801 | 45,031 | 1.7 | 1.7 |
Total retail sales | 112,078 | 111,463 | 0.6 | 0.1 |
Totals may not foot due to rounding
(p) | The effects of weather were estimated using monthly heating degree days and cooling degree days from certain locations within each jurisdiction and comparing to “normal” weather based on 20 year historical data. The models used to estimate weather are updated periodically and subject to change. |
D: EWC Financial and Operational Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA.
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | |||
First Quarter 2017 vs. 2016 | |||
($ in millions) | First Quarter | ||
2017 | 2016 | Change | |
Net income (loss) | (27) | 80 | (107) |
Add back: interest expense | 6 | 6 | — |
Add back: income taxes | (78) | 52 | (130) |
Add back: depreciation and amortization | 53 | 56 | (3) |
Subtract: interest and investment income | 43 | 27 | 16 |
Add back: decommissioning expense | 75 | 31 | 44 |
Adjusted EBITDA | (15) | 199 | (214) |
Add back pre-tax special items for: | |||
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants | 231 | 20 | 211 |
Gain on the sale of FitzPatrick | (16) | — | (16) |
Operational adjusted EBITDA | 200 | 219 | (19) |
Totals may not foot due to rounding
Appendix D-2 provides a comparative summary of EWC operational and financial measures.
Appendix D-2: EWC Operational and Financial Measures | |||
First Quarter 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | |||
First Quarter | |||
2017 | 2016 | % Change | |
Owned capacity (MW) (q) | 4,800 | 4,880 | (1.6) |
GWh billed | 8,363 | 9,246 | (9.6) |
As-reported net revenue ($ in millions) | 494 | 466 | 6.0 |
Operational net revenue ($ in millions) | 404 | 466 | (13.3) |
EWC Nuclear Fleet | |||
Capacity factor | 80% | 90% | (11.1) |
GWh billed | 7,835 | 8,688 | (9.8) |
Production cost per MWh | $23.00 | $21.91 | 5.0 |
Average energy and capacity revenue per MWh (r) | $55.15 | $56.16 | (1.8) |
As-reported net revenue ($ in millions) | 491 | 464 | 5.8 |
Operational net revenue ($ in millions) | 401 | 464 | (13.6) |
Refueling outage days | |||
FitzPatrick | 42 | — | |
Indian Point 2 | — | 25 | |
Indian Point 3 | 19 | — | |
(q) | Investments in wind generation were sold in November 2016; includes FitzPatrick, which was sold on 3/31/17 |
(r) | Average energy and capacity revenue per MWh excluding FitzPatrick was $55.27 in first quarter 2017 and $63.45 in first quarter 2016 |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.
As-reported measures in this table are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures in this table are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items.
Appendix E: GAAP and Non-GAAP Financial Measures | |||
First Quarter 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | |||
For 12 months ending March 31 | 2017 | 2016 | Change |
GAAP Measures | |||
ROIC - as-reported | (1.3%) | 0.7% | (2.0%) |
ROE - as-reported | (8.4%) | (2.5%) | (5.9%) |
Book value per share | $44.90 | $52.38 | ($7.48) |
End of period shares outstanding (millions) | 179.4 | 178.7 | 0.7 |
Non-GAAP Measures | |||
ROIC - operational | 6.7% | 5.8% | 0.9% |
ROE - operational | 13.9% | 10.4% | 3.5% |
As of March 31 ($ in millions) | 2017 | 2016 | Change |
GAAP Measures | |||
Cash and cash equivalents | 1,083 | 1,092 | (9) |
Revolver capacity | 4,185 | 3,794 | 391 |
Commercial paper | 1,088 | 578 | 510 |
Total debt | 15,611 | 15,092 | 519 |
Securitization debt | 637 | 752 | (115) |
Debt to capital | 65.4% | 60.9% | 4.5% |
Off-balance sheet liabilities: | |||
Debt of joint ventures - Entergy’s share | 71 | 77 | (6) |
Leases - Entergy’s share | 397 | 359 | 38 |
Power purchase agreements accounted for as leases | 166 | 195 | (29) |
Total off-balance sheet liabilities | 634 | 631 | 3 |
Non-GAAP Measures | |||
Debt to capital, excluding securitization debt | 64.4% | 59.7% | 4.7% |
Gross liquidity | 5,268 | 4,886 | 382 |
Net debt to net capital, excluding securitization debt | 62.7% | 57.8% | 4.9% |
Parent debt to total debt, excluding securitization debt | 21.1% | 19.5% | 1.6% |
Debt to operational adjusted EBITDA, excluding securitization debt | 4.4x | 4.6x | (0.2x) |
Operational FFO to debt, excluding securitization debt | 17.3% | 21.0% | (3.7%) |
F: Definitions, Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operational measures, as well as GAAP and non-GAAP financial measures. Non-GAAP measures remove the effects of financial events that are not routine from commonly used financial measures.
Appendix F-1: Definitions | |
Utility Operational and Financial Measures | |
GWh billed | Total number of GWh billed to retail and wholesale customers |
Net revenue | Operating revenue less fuel, fuel related expenses and gas purchased for resale, purchased power and other regulatory charges (credits) - net |
Non-fuel O&M | Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
Non-fuel O&M per MWh | Non-fuel O&M per MWh of billed sales |
Number of retail customers | Number of customers at end of period |
EWC Operational and Financial Measures | |
Average revenue under contract per kW-month (applies to capacity contracts only) | Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
Average revenue per MWh on contracted volumes | Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs |
Bundled capacity and energy contracts | A contract for the sale of installed capacity and related energy, priced per MWh sold |
Capacity contracts | A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO |
Capacity factor | Normalized percentage of the period that the nuclear plants generate power |
Expected sold and market total revenue per MWh | Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
Firm LD | Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products |
Appendix F-1: Definitions | ||
EWC Operational and Financial Measures (continued) | ||
GWh billed | Total number of GWh billed to customers and financially-settled instruments (does not include amounts from investment in wind generation that was accounted for under the equity method of accounting and which was sold in November 2016) | |
Net revenue | Operating revenue less fuel, fuel-related expenses and purchased power | |
Offsetting positions | Transactions for the purchase of energy, generally to offset a Firm LD transaction | |
Owned capacity (MW) | Installed capacity owned and operated by EWC; investment in wind generation was sold in November 2016 | |
Percent of capacity sold forward | Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
Percent of planned generation under contract | Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
Planned net MW in operation | Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim (May 31, 2019), Palisades (Oct. 1, 2018), Indian Point 2 (April 30, 2020) and Indian Point 3 (April 30, 2021) | |
Planned TWh of generation | Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim (May 31, 2019), Palisades (Oct. 1, 2018), Indian Point 2 (April 30, 2020) and Indian Point 3 (April 30, 2021) | |
Production cost per MWh | Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items | |
Refueling outage days | Number of days lost for a scheduled refueling and maintenance outage during the period | |
Unit-contingent | Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
Financial Measures - GAAP | ||
Book value per share | End of period common equity divided by end of period shares outstanding | |
Debt of joint ventures - Entergy’s share | Entergy’s share of debt issued by business joint ventures at EWC | |
Debt to capital ratio | Total debt divided by total capitalization | |
Leases - Entergy’s share | Operating leases held by subsidiaries capitalized at implicit interest rate | |
Revolver capacity | Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee | |
ROIC - as-reported | 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
ROE - as-reported | 12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
Securitization debt | Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI and Hurricane Isaac at ENOI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL | |
Appendix F-1: Definitions | |
Financial Measures - Non-GAAP | |
Total debt | Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet |
Adjusted EBITDA | Earnings before interest, depreciation and amortization and income taxes excluding decommissioning expense; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds |
Adjusted EPS | As-reported EPS excluding special items and weather and normalizing for income tax |
Debt to capital ratio, excluding securitization debt | Total debt divided by total capitalization, excluding securitization debt |
Debt to operational adjusted EBITDA, excluding securitization debt | End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA |
FFO | OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
Operational FFO to debt, excluding securitization debt | 12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
Gross liquidity | Sum of cash and revolver capacity |
Operational adjusted EBITDA | Adjusted EBITDA excluding effects of special items |
Operational EPS | As-reported EPS adjusted to exclude the impact of special items |
Operational FFO | FFO excluding effects of special items |
Parent debt to total debt ratio, excluding securitization debt | End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of total debt excluding securitization debt |
Net debt to net capital ratio, excluding securitization debt | Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
ROIC - operational | 12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
ROE - operational | 12-months rolling operational net income attributable to Entergy Corporation divided by average common equity |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix F-2: Abbreviations and Acronyms | |||
ADIT AFUDC - borrowed funds AFUDC - equity funds ALJ AMI ANO APSC ARO ASLB CCGT CCNO COD Cooper CT CZM DCRF DOE EAI EBITDA EGSL ELL EMI ENOI ENVY ESI EPS ETI ETR EWC FCA FERC FFO Firm LD FitzPatrick FRP GAAP Grand Gulf Indian Point 1 Indian Point 2 Indian Point 3 IPEC ISO ISES LHV | Accumulated deferred income taxes Allowance for borrowed funds used during construction Allowance for equity funds used during construction Administrative law judge Advanced metering infrastructure Arkansas Nuclear One (nuclear) Arkansas Public Service Commission Asset retirement obligation Atomic Safety and Licensing Board Combined cycle gas turbine Council of the City of New Orleans, Louisiana Commercial operation date Cooper Nuclear Station Simple cycle combustion turbine Coastal zone management Distribution cost recovery factor U.S. Department of Energy Entergy Arkansas, Inc. Earnings before interest, income taxes, depreciation and amortization Entergy Gulf States Louisiana, L.L.C. Entergy Louisiana, LLC Entergy Mississippi, Inc. Entergy New Orleans, Inc. Entergy Nuclear Vermont Yankee Entergy Services, Inc. Earnings per share Entergy Texas, Inc. Entergy Corporation Entergy Wholesale Commodities Forward Capacity Auction Federal Energy Regulatory Commission Funds from operations Firm liquidated damages James A. FitzPatrick Nuclear Power Plant (nuclear, sold March 31, 2017) Formula rate plan U.S. generally accepted accounting principles Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy Indian Point Energy Center Unit 1 (nuclear) Indian Point Energy Center Unit 2 (nuclear) Indian Point Energy Center Unit 3 (nuclear) Indian Point Energy Center (nuclear) Independent system operator Independence Steam Electric Station (coal) Lower Hudson Valley | LPSC LTM Michigan PSC MISO Moody’s MPSC MTEP Nelson 6 NEPOOL Ninemile 6 Non-fuel O&M NDT NRC NYISO NYS NYSDEC NYSDOS NYPA NYSE O&M OCF OPEB Palisades PDSAR Pilgrim PPA PUCT RFP RISEC ROE ROIC RPCE RS Cogen RSP SEC SERI SPDES TCRF Top Deer Union UP&O VPSB VY WACC WQC YOY | Louisiana Public Service Commission Last twelve months Michigan Public Service Commission Midcontinent Independent System Operator, Inc. Moody’s Investor Service Mississippi Public Service Commission MISO Transmission Expansion Planning Unit 6 of Roy S. Nelson plant (coal) New England Power Pool Ninemile Point Unit 6 Non-fuel operation and maintenance expense Nuclear decommissioning trust Nuclear Regulatory Commission New York Independent System Operator, Inc. New York State New York State Department of Environmental Conservation New York State Department of State New York Power Authority New York Stock Exchange Operation and maintenance expense Net cash flow provided by operating activities Other post-employment benefits Palisades Power Plant (nuclear) Post-Shutdown Decommissioning Activities Report Pilgrim Nuclear Power Station (nuclear) Power purchase agreement or purchased power agreement Public Utility Commission of Texas Request for proposal Rhode Island State Energy Center (CCGT) Return on equity Return on invested capital Rough production cost equalization RS Cogen facility (CCGT cogen) Rate Stabilization Plan (ELL Gas) U.S. Securities and Exchange Commission System Energy Resources, Inc. State Pollutant Discharge Elimination System Transmission cost recovery factor Top Deer Wind Ventures, LLC Union Power Station (CCGT) Utility, Parent & Other Vermont Public Service Board Vermont Yankee Nuclear Power Station (nuclear) Weighted-average cost of capital Water Quality Certification Year-over-year |
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - EWC Operational Net Revenue | |||||||
($ in thousands except where noted) | First Quarter | ||||||
2017 | 2016 | ||||||
As-reported net revenue | (A) | 494 | 466 | ||||
Special items included in net revenue: | |||||||
EWC Nuclear costs associated with decisions to close or sell plants | 91 | — | |||||
Total special items included in net revenue | (B) | 404 | 466 | ||||
Operational net revenue | (A-B) | ||||||
EWC Nuclear | |||||||
As-reported EWC Nuclear net revenue | (C) | 491 | 464 | ||||
Special items included in EWC Nuclear net revenue: | |||||||
EWC Nuclear costs associated with decisions to close or sell plants | 91 | — | |||||
Total special items included in EWC Nuclear net revenue | (D) | 401 | 464 | ||||
Operational EWC Nuclear net revenue | (C-D) | ||||||
Totals may not foot due to rounding
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
($ in millions except where noted) | First Quarter | ||
2017 | 2016 | ||
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months | (A) | (731) | (245) |
Preferred dividends | 17 | 20 | |
Tax effected interest expense | 409 | 398 | |
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense | (B) | (305) | 173 |
Special items in prior quarters | (1,842) | (1,248) | |
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants | (150) | (13) | |
Gain on the sale of FitzPatrick | 11 | — | |
Income tax benefit resulting from FitzPatrick transaction | 45 | — | |
Total special items, rolling 12 months | (C) | (1,937) | (1,261) |
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense | (B-C) | 1,632 | 1,434 |
Operational earnings, rolling 12 months | (A-C) | 1,206 | 1,016 |
Average invested capital | (D) | 24,321 | 24,627 |
Average common equity | (E) | 8,709 | 9,747 |
ROIC - as-reported | (B/D) | (1.3%) | 0.7% |
ROIC - operational | [(B-C)/D] | 6.7% | 5.8% |
ROE - as-reported | (A/E) | (8.4%) | (2.5)% |
ROE - operational | [(A-C)/E] | 13.9% | 10.4% |
Totals may not foot due to rounding
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt | |||
($ in millions except where noted) | First Quarter | ||
2017 | 2016 | ||
Total debt | (A) | 15,611 | 15,092 |
Less securitization debt | (B) | 637 | 752 |
Total debt, excluding securitization debt | (C) | 14,974 | 14,340 |
Less cash and cash equivalents | (D) | 1,083 | 1,092 |
Net debt, excluding securitization debt | (E) | 13,891 | 13,248 |
Total capitalization | (F) | 23,871 | 24,771 |
Less securitization debt | (B) | 637 | 752 |
Total capitalization, excluding securitization debt | (G) | 23,234 | 24,019 |
Less cash and cash equivalents | (D) | 1,083 | 1,092 |
Net capital, excluding securitization debt | (H) | 22,151 | 22,927 |
Debt to capital | (A/F) | 65.4% | 60.9% |
Debt to capital, excluding securitization debt | (C/G) | 64.4% | 59.7% |
Net debt to net capital, excluding securitization debt | (E/H) | 62.7% | 57.8% |
Revolver capacity | (I) | 4,185 | 3,794 |
Gross liquidity | (D+I) | 5,268 | 4,886 |
Entergy Corporation notes: | |||
Due January 2017 | — | 500 | |
Due September 2020 | 450 | 450 | |
Due July 2022 | 650 | 650 | |
Due September 2026 | 750 | — | |
Total parent long-term debt | (J) | 1,850 | 1,600 |
Revolver draw | (K) | 225 | 616 |
Commercial paper | (L) | 1,088 | 578 |
Total parent debt | (J)+(K)+(L) | 3,163 | 2,794 |
Parent debt to total debt, excluding securitization debt | [((J)+(K)+(L))/(C)] | 21.1% | 19.5% |
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt (continued) | |||
($ in millions except where noted) | First Quarter | ||
2017 | 2016 | ||
Total debt | (A) | 15,611 | 15,092 |
Less securitization debt | (B) | 637 | 752 |
Total debt, excluding securitization debt | (C) | 14,974 | 14,340 |
As-reported consolidated net income (loss), rolling 12 months | (714) | (224) | |
Add back (rolling 12 months): | |||
Interest expense | 664 | 647 | |
Income taxes | (949) | (653) | |
Depreciation and amortization | 1,360 | 1,340 | |
Regulatory charges (credits) | 8 | 166 | |
Decommissioning expense | 373 | 279 | |
Subtract (rolling 12 months): | |||
Securitization proceeds | 143 | 136 | |
Interest and investment income | 169 | 152 | |
AFUDC-equity funds | 68 | 59 | |
Adjusted EBITDA, rolling 12 months | (D) | 362 | 1,208 |
Add back special items (rolling 12 months pre-tax): | |||
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants | 3,121 | 2,066 | |
DOE litigation awards for VY and FitzPatrick | (34) | — | |
Top Deer investment impairment | — | 37 | |
Gain on the sale of RISEC | — | (154) | |
Gain on the sale of FitzPatrick | (16) | — | |
Operational adjusted EBITDA, rolling 12 months | (E) | 3,433 | 3,157 |
Debt to operational adjusted EBITDA, excluding securitization debt | (C)/(E) | 4.4x | 4.6x |
Net cash flow provided by operating activities, rolling 12 months | (F) | 2,995 | 3,213 |
AFUDC-borrowed funds used during construction, rolling 12 months | (G) | (34) | (30) |
Working capital items in net cash flow provided by operating activities (rolling 12 months): | |||
Receivables | (17) | 92 | |
Fuel inventory | 54 | 1 | |
Accounts payable | 194 | (49) | |
Prepaid taxes and taxes accrued | (72) | 134 | |
Interest accrued | 6 | 4 | |
Other working capital accounts | 119 | (118) | |
Securitization regulatory charges | 114 | 106 | |
Total | (H) | 398 | 170 |
FFO, rolling 12 months | (F)+(G)-(H) | 2,563 | 3,013 |
Add back special items (rolling 12 months pre-tax): | |||
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants | 24 | 4 | |
Operational FFO, rolling 12 months | (I) | 2,587 | 3,017 |
Operational FFO to debt, excluding securitization debt | (I)/(C) | 17.3% | 21.0% |
Totals may not foot due to rounding
Financial Statements
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
March 31, 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $57,128 | $1,132 | $2,608 | $60,868 | ||||||||||||
Temporary cash investments | 379,006 | 9,495 | 633,693 | 1,022,194 | ||||||||||||
Total cash and cash equivalents | 436,134 | 10,627 | 636,301 | 1,083,062 | ||||||||||||
Notes receivable | — | (529,436 | ) | 529,436 | — | |||||||||||
Accounts receivable: | ||||||||||||||||
Customer | 428,476 | — | 83,749 | 512,225 | ||||||||||||
Allowance for doubtful accounts | (12,524 | ) | — | — | (12,524 | ) | ||||||||||
Associated companies | 23,231 | (29,024 | ) | 5,793 | — | |||||||||||
Other | 125,211 | 304 | 8,708 | 134,223 | ||||||||||||
Accrued unbilled revenues | 339,219 | — | — | 339,219 | ||||||||||||
Total accounts receivable | 903,613 | (28,720 | ) | 98,250 | 973,143 | |||||||||||
Deferred fuel costs | 117,971 | — | — | 117,971 | ||||||||||||
Fuel inventory - at average cost | 167,017 | — | 6,118 | 173,135 | ||||||||||||
Materials and supplies - at average cost | 636,773 | — | 44,494 | 681,267 | ||||||||||||
Deferred nuclear refueling outage costs | 148,886 | — | 11,664 | 160,550 | ||||||||||||
Prepayments and other | 177,236 | (9,074 | ) | 40,201 | 208,363 | |||||||||||
TOTAL | 2,587,630 | (556,603 | ) | 1,366,464 | 3,397,491 | |||||||||||
OTHER PROPERTY AND INVESTMENTS | ||||||||||||||||
Investment in affiliates - at equity | 1,390,786 | (1,390,674 | ) | 86 | 198 | |||||||||||
Decommissioning trust funds | 2,873,826 | — | 3,795,500 | 6,669,326 | ||||||||||||
Non-utility property - at cost (less accumulated depreciation) | 234,321 | (11 | ) | 9,373 | 243,683 | |||||||||||
Other | 449,026 | — | 2,689 | 451,715 | ||||||||||||
TOTAL | 4,947,959 | (1,390,685 | ) | 3,807,648 | 7,364,922 | |||||||||||
PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||||
Electric | 44,372,378 | 3,692 | 1,009,855 | 45,385,925 | ||||||||||||
Property under capital lease | 619,135 | — | — | 619,135 | ||||||||||||
Natural gas | 418,862 | — | — | 418,862 | ||||||||||||
Construction work in progress | 1,546,643 | 730 | 47,076 | 1,594,449 | ||||||||||||
Nuclear fuel | 847,143 | — | 150,870 | 998,013 | ||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 47,804,161 | 4,422 | 1,207,801 | 49,016,384 | ||||||||||||
Less - accumulated depreciation and amortization | 20,361,675 | 198 | 481,158 | 20,843,031 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET | 27,442,486 | 4,224 | 726,643 | 28,173,353 | ||||||||||||
DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||||
Regulatory assets: | ||||||||||||||||
Regulatory asset for income taxes - net | 764,266 | — | — | 764,266 | ||||||||||||
Other regulatory assets | 4,719,430 | — | — | 4,719,430 | ||||||||||||
Deferred fuel costs | 239,149 | — | — | 239,149 | ||||||||||||
Goodwill | 374,099 | — | 3,073 | 377,172 | ||||||||||||
Accumulated deferred income taxes | 13,178 | 40,291 | 61,665 | 115,134 | ||||||||||||
Other | 105,982 | 8,583 | 52,724 | 167,289 | ||||||||||||
TOTAL | 6,216,104 | 48,874 | 117,462 | 6,382,440 | ||||||||||||
TOTAL ASSETS | $41,194,179 | ($1,894,190 | ) | $6,018,217 | $45,318,206 | |||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
March 31, 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Currently maturing long-term debt | $276,209 | $— | $57,500 | $333,709 | ||||||||||||
Notes payable and commercial paper: | ||||||||||||||||
Associated companies | — | (15,098 | ) | 15,098 | — | |||||||||||
Other | 235,541 | 1,087,849 | — | 1,323,390 | ||||||||||||
Account payable: | ||||||||||||||||
Associated companies | 10,803 | (29,524 | ) | 18,721 | — | |||||||||||
Other | 821,863 | 470 | 327,165 | 1,149,498 | ||||||||||||
Customer deposits | 403,842 | — | — | 403,842 | ||||||||||||
Taxes accrued | (45,948 | ) | 105,031 | 63,199 | 122,282 | |||||||||||
Interest accrued | 164,406 | 8,836 | 66 | 173,308 | ||||||||||||
Deferred fuel costs | 104,920 | — | — | 104,920 | ||||||||||||
Obligations under capital leases | 2,721 | — | — | 2,721 | ||||||||||||
Pension and other postretirement liabilities | 60,614 | — | 12,703 | 73,317 | ||||||||||||
Other | 115,288 | 1,924 | 74,844 | 192,056 | ||||||||||||
TOTAL | 2,150,259 | 1,159,488 | 569,296 | 3,879,043 | ||||||||||||
NON-CURRENT LIABILITIES | ||||||||||||||||
Accumulated deferred income taxes and taxes accrued | 8,324,802 | (95,552 | ) | (667,868 | ) | 7,561,382 | ||||||||||
Accumulated deferred investment tax credits | 224,338 | — | — | 224,338 | ||||||||||||
Obligations under capital leases | 23,573 | — | — | 23,573 | ||||||||||||
Other regulatory liabilities | 1,554,605 | — | — | 1,554,605 | ||||||||||||
Decommissioning and retirement cost liabilities | 2,920,855 | — | 3,157,721 | 6,078,576 | ||||||||||||
Accumulated provisions | 476,637 | — | 644 | 477,281 | ||||||||||||
Pension and other postretirement liabilities | 2,233,680 | — | 719,526 | 2,953,206 | ||||||||||||
Long-term debt | 11,865,168 | 2,062,036 | — | 13,927,204 | ||||||||||||
Other | 685,726 | (380,137 | ) | 73,035 | 378,624 | |||||||||||
TOTAL | 28,309,384 | 1,586,347 | 3,283,058 | 33,178,789 | ||||||||||||
Subsidiaries' preferred stock without sinking fund | 178,936 | — | 24,249 | 203,185 | ||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | ||||||||||||||||
issued 254,752,788 shares in 2017 | 2,051,268 | (2,249,823 | ) | 201,103 | 2,548 | |||||||||||
Paid-in capital | 2,799,315 | 937,872 | 1,660,892 | 5,398,079 | ||||||||||||
Retained earnings | 5,949,700 | 2,028,427 | 143,976 | 8,122,103 | ||||||||||||
Accumulated other comprehensive income (loss) | (124,683 | ) | — | 135,643 | 10,960 | |||||||||||
Less - treasury stock, at cost (75,319,784 shares in 2017) | 120,000 | 5,356,501 | — | 5,476,501 | ||||||||||||
TOTAL | 10,555,600 | (4,640,025 | ) | 2,141,614 | 8,057,189 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 41,194,179 | $ | (1,894,190 | ) | $ | 6,018,217 | $ | 45,318,206 | |||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
December 31, 2016 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $123,956 | $939 | $4,684 | $129,579 | ||||||||||||
Temporary cash investments | 622,953 | 7,453 | 427,859 | 1,058,265 | ||||||||||||
Total cash and cash equivalents | 746,909 | 8,392 | 432,543 | 1,187,844 | ||||||||||||
Notes receivable | — | (528,459 | ) | 528,459 | — | |||||||||||
Accounts receivable: | ||||||||||||||||
Customer | 482,302 | — | 172,693 | 654,995 | ||||||||||||
Allowance for doubtful accounts | (11,924 | ) | — | — | (11,924 | ) | ||||||||||
Associated companies | 22,892 | (24,532 | ) | 1,640 | — | |||||||||||
Other | 148,743 | — | 9,676 | 158,419 | ||||||||||||
Accrued unbilled revenues | 368,677 | — | — | 368,677 | ||||||||||||
Total accounts receivable | 1,010,690 | (24,532 | ) | 184,009 | 1,170,167 | |||||||||||
Deferred fuel costs | 108,465 | — | — | 108,465 | ||||||||||||
Fuel inventory - at average cost | 173,388 | — | 6,212 | 179,600 | ||||||||||||
Materials and supplies - at average cost | 645,682 | — | 52,841 | 698,523 | ||||||||||||
Deferred nuclear refueling outage costs | 128,577 | — | 17,644 | 146,221 | ||||||||||||
Prepayments and other | 161,495 | (8,629 | ) | 40,582 | 193,448 | |||||||||||
TOTAL | 2,975,206 | (553,228 | ) | 1,262,290 | 3,684,268 | |||||||||||
OTHER PROPERTY AND INVESTMENTS | ||||||||||||||||
Investment in affiliates - at equity | 1,390,786 | (1,390,674 | ) | 86 | 198 | |||||||||||
Decommissioning trust funds | 2,755,937 | — | 2,967,960 | 5,723,897 | ||||||||||||
Non-utility property - at cost (less accumulated depreciation) | 224,148 | (11 | ) | 9,504 | 233,641 | |||||||||||
Other | 466,599 | — | 3,065 | 469,664 | ||||||||||||
TOTAL | 4,837,470 | (1,390,685 | ) | 2,980,615 | 6,427,400 | |||||||||||
PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||||
Electric | 44,173,933 | 3,690 | 1,013,593 | 45,191,216 | ||||||||||||
Property under capital lease | 619,527 | — | — | 619,527 | ||||||||||||
Natural gas | 413,224 | — | — | 413,224 | ||||||||||||
Construction work in progress | 1,334,169 | 631 | 43,380 | 1,378,180 | ||||||||||||
Nuclear fuel | 816,794 | — | 221,105 | 1,037,899 | ||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 47,357,647 | 4,321 | 1,278,078 | 48,640,046 | ||||||||||||
Less - accumulated depreciation and amortization | 20,290,630 | 197 | 427,812 | 20,718,639 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET | 27,067,017 | 4,124 | 850,266 | 27,921,407 | ||||||||||||
DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||||
Regulatory assets: | ||||||||||||||||
Regulatory asset for income taxes - net | 761,280 | — | — | 761,280 | ||||||||||||
Other regulatory assets | 4,769,913 | — | — | 4,769,913 | ||||||||||||
Deferred fuel costs | 239,100 | — | — | 239,100 | ||||||||||||
Goodwill | 374,099 | — | 3,073 | 377,172 | ||||||||||||
Accumulated deferred income taxes | 15,415 | 40,309 | 62,161 | 117,885 | ||||||||||||
Other | 59,251 | 9,125 | 1,537,633 | 1,606,009 | ||||||||||||
TOTAL | 6,219,058 | 49,434 | 1,602,867 | 7,871,359 | ||||||||||||
TOTAL ASSETS | $41,098,751 | ($1,890,355 | ) | $6,696,038 | $45,904,434 | |||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
December 31, 2016 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Currently maturing long-term debt | $364,900 | $— | $— | $364,900 | ||||||||||||
Notes payable and commercial paper: | ||||||||||||||||
Associated companies | — | (15,555 | ) | 15,555 | — | |||||||||||
Other | 70,686 | 344,325 | — | 415,011 | ||||||||||||
Account payable: | ||||||||||||||||
Associated companies | 24,338 | (46,062 | ) | 21,724 | — | |||||||||||
Other | 990,033 | 585 | 294,959 | 1,285,577 | ||||||||||||
Customer deposits | 403,311 | — | — | 403,311 | ||||||||||||
Taxes accrued | (27,752 | ) | 126,885 | 81,981 | 181,114 | |||||||||||
Interest accrued | 159,300 | 27,882 | 47 | 187,229 | ||||||||||||
Deferred fuel costs | 102,753 | — | — | 102,753 | ||||||||||||
Obligations under capital leases | 2,423 | — | — | 2,423 | ||||||||||||
Pension and other postretirement liabilities | 63,026 | — | 13,916 | 76,942 | ||||||||||||
Other | 138,880 | 1,943 | 40,013 | 180,836 | ||||||||||||
TOTAL | 2,291,898 | 440,003 | 468,195 | 3,200,096 | ||||||||||||
NON-CURRENT LIABILITIES | ||||||||||||||||
Accumulated deferred income taxes and taxes accrued | 8,132,129 | 8,898 | (645,737 | ) | 7,495,290 | |||||||||||
Accumulated deferred investment tax credits | 227,147 | — | — | 227,147 | ||||||||||||
Obligations under capital leases | 24,582 | — | — | 24,582 | ||||||||||||
Other regulatory liabilities | 1,572,929 | — | — | 1,572,929 | ||||||||||||
Decommissioning and retirement cost liabilities | 2,879,307 | — | 3,113,169 | 5,992,476 | ||||||||||||
Accumulated provisions | 480,474 | — | 1,162 | 481,636 | ||||||||||||
Pension and other postretirement liabilities | 2,299,122 | — | 736,888 | 3,036,010 | ||||||||||||
Long-term debt | 11,886,598 | 2,536,557 | 44,500 | 14,467,655 | ||||||||||||
Other | 686,140 | (391,127 | ) | 826,606 | 1,121,619 | |||||||||||
TOTAL | 28,188,428 | 2,154,328 | 4,076,588 | 34,419,344 | ||||||||||||
Subsidiaries' preferred stock without sinking fund | 178,936 | — | 24,249 | 203,185 | ||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | ||||||||||||||||
issued 254,752,788 shares in 2016 | 2,051,268 | (2,249,823 | ) | 201,103 | 2,548 | |||||||||||
Paid-in capital | 2,799,315 | 953,993 | 1,663,937 | 5,417,245 | ||||||||||||
Retained earnings | 5,834,123 | 2,189,728 | 171,720 | 8,195,571 | ||||||||||||
Accumulated other comprehensive income (loss) | (125,217 | ) | — | 90,246 | (34,971 | ) | ||||||||||
Less - treasury stock, at cost (75,623,363 shares in 2016) | 120,000 | 5,378,584 | — | 5,498,584 | ||||||||||||
TOTAL | 10,439,489 | (4,484,686 | ) | 2,127,006 | 8,081,809 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $41,098,751 | ($1,890,355 | ) | $6,696,038 | $45,904,434 | |||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Three Months Ended March 31, 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $1,991,761 | ($21 | ) | $— | $1,991,740 | |||||||||||
Natural gas | 43,351 | — | — | 43,351 | ||||||||||||
Competitive businesses | — | — | 553,367 | 553,367 | ||||||||||||
Total | 2,035,112 | (21 | ) | 553,367 | 2,588,458 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operation and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 395,945 | (21 | ) | 21,642 | 417,566 | |||||||||||
Purchased power | 320,295 | 21 | 37,452 | 357,768 | ||||||||||||
Nuclear refueling outage expenses | 36,577 | — | 5,987 | 42,564 | ||||||||||||
Other operation and maintenance | 567,590 | 4,854 | 295,102 | 867,546 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 211,791 | 211,791 | ||||||||||||
Decommissioning | 39,510 | — | 74,864 | 114,374 | ||||||||||||
Taxes other than income taxes | 132,623 | 809 | 22,921 | 156,353 | ||||||||||||
Depreciation and amortization | 294,358 | 314 | 52,593 | 347,265 | ||||||||||||
Other regulatory credits | (85,302 | ) | — | — | (85,302 | ) | ||||||||||
Total | 1,701,596 | 5,977 | 722,352 | 2,429,925 | ||||||||||||
Gain on sale of assets | — | — | 16,270 | 16,270 | ||||||||||||
OPERATING INCOME | 333,516 | (5,998 | ) | (152,715 | ) | 174,803 | ||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 19,008 | — | — | 19,008 | ||||||||||||
Interest and investment income | 51,681 | (38,270 | ) | 43,138 | 56,549 | |||||||||||
Miscellaneous - net | (3,768 | ) | (1,215 | ) | 10,484 | 5,501 | ||||||||||
Total | 66,921 | (39,485 | ) | 53,622 | 81,058 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 143,364 | 21,284 | 6,441 | 171,089 | ||||||||||||
Allowance for borrowed funds used during construction | (9,042 | ) | — | — | (9,042 | ) | ||||||||||
Total | 134,322 | 21,284 | 6,441 | 162,047 | ||||||||||||
INCOME BEFORE INCOME TAXES | 266,115 | (66,767 | ) | (105,534 | ) | 93,814 | ||||||||||
Income taxes | 98,492 | (12,392 | ) | (78,337 | ) | 7,763 | ||||||||||
CONSOLIDATED NET INCOME | 167,623 | (54,375 | ) | (27,197 | ) | 86,051 | ||||||||||
Preferred dividend requirements of subsidiaries | 2,899 | — | 547 | 3,446 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $164,724 | ($54,375 | ) | ($27,744 | ) | $82,605 | ||||||||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $0.92 | ($0.30) | ($0.16) | $0.46 | ||||||||||||
DILUTED | $0.92 | ($0.30) | ($0.16) | $0.46 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 179,335,063 | |||||||||||||||
DILUTED | 179,842,053 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Three Months Ended March 31, 2016 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $2,042,180 | ($20 | ) | $— | $2,042,160 | |||||||||||
Natural gas | 45,613 | — | — | 45,613 | ||||||||||||
Competitive businesses | — | — | 522,079 | 522,079 | ||||||||||||
Total | 2,087,793 | (20 | ) | 522,079 | 2,609,852 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 460,969 | (20 | ) | 44,018 | 504,967 | |||||||||||
Purchased power | 250,610 | 19 | 11,694 | 262,323 | ||||||||||||
Nuclear refueling outage expenses | 32,433 | — | 18,798 | 51,231 | ||||||||||||
Other operation and maintenance | 514,148 | 4,102 | 213,665 | 731,915 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 7,361 | 7,361 | ||||||||||||
Decommissioning | 37,243 | — | 31,385 | 68,628 | ||||||||||||
Taxes other than income taxes | 125,021 | 516 | 24,241 | 149,778 | ||||||||||||
Depreciation and amortization | 277,908 | 257 | 56,107 | 334,272 | ||||||||||||
Other regulatory charges | 1,159 | — | — | 1,159 | ||||||||||||
Total | 1,699,491 | 4,874 | 407,269 | 2,111,634 | ||||||||||||
OPERATING INCOME | 388,302 | (4,894 | ) | 114,810 | 498,218 | |||||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 18,932 | — | — | 18,932 | ||||||||||||
Interest and investment income | 44,530 | (38,586 | ) | 26,809 | 32,753 | |||||||||||
Miscellaneous - net | (5,981 | ) | (959 | ) | (3,646 | ) | (10,587 | ) | ||||||||
Total | 57,481 | (39,545 | ) | 23,163 | 41,098 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 147,978 | 19,730 | 6,103 | 173,811 | ||||||||||||
Allowance for borrowed funds used during construction | (9,682 | ) | — | — | (9,682 | ) | ||||||||||
Total | 138,296 | 19,730 | 6,103 | 164,129 | ||||||||||||
INCOME BEFORE INCOME TAXES | 307,487 | (64,169 | ) | 131,870 | 375,187 | |||||||||||
Income taxes | 107,836 | (20,204 | ) | 52,314 | 139,945 | |||||||||||
CONSOLIDATED NET INCOME | 199,651 | (43,965 | ) | 79,556 | 235,242 | |||||||||||
Preferred dividend requirements of subsidiaries | 4,729 | — | 547 | 5,276 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $194,922 | ($43,965 | ) | $79,009 | $229,966 | |||||||||||
EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $1.09 | ($0.25) | $0.45 | $1.29 | ||||||||||||
DILUTED | $1.09 | ($0.25) | $0.44 | $1.28 | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 178,578,536 | |||||||||||||||
DILUTED | 178,976,380 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Twelve Months Ended March 31, 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $8,816,339 | ($101 | ) | $— | $8,816,238 | |||||||||||
Natural gas | 127,086 | — | — | 127,086 | ||||||||||||
Competitive businesses | — | — | 1,880,927 | 1,880,927 | ||||||||||||
Total | 8,943,425 | (101 | ) | 1,880,927 | 10,824,251 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 1,498,928 | (101 | ) | 222,973 | 1,721,800 | |||||||||||
Purchased power | 1,228,183 | 101 | 87,687 | 1,315,972 | ||||||||||||
Nuclear refueling outage expenses | 131,668 | — | 68,344 | 200,011 | ||||||||||||
Other operation and maintenance | 2,413,251 | 23,012 | 996,080 | 3,432,344 | ||||||||||||
Asset write-offs, impairments and related charges | — | — | 3,040,067 | 3,040,067 | ||||||||||||
Decommissioning | 154,622 | — | 218,549 | 373,171 | ||||||||||||
Taxes other than income taxes | 505,112 | 1,011 | 92,954 | 599,076 | ||||||||||||
Depreciation and amortization | 1,162,138 | 1,703 | 196,338 | 1,360,179 | ||||||||||||
Other regulatory charges - net | 7,781 | — | — | 7,781 | ||||||||||||
Total | 7,101,683 | 25,726 | 4,922,992 | 12,050,401 | ||||||||||||
Gain on sale of assets | — | — | 16,270 | 16,270 | ||||||||||||
OPERATING INCOME (LOSS) | 1,841,742 | (25,827 | ) | (3,025,795 | ) | (1,209,880 | ) | |||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 67,638 | — | — | 67,638 | ||||||||||||
Interest and investment income | 197,145 | (153,017 | ) | 124,794 | 168,922 | |||||||||||
Miscellaneous - net | (18,804 | ) | (8,130 | ) | 1,407 | (25,528 | ) | |||||||||
Total | 245,979 | (161,147 | ) | 126,201 | 211,032 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 587,108 | 87,519 | 23,196 | 697,823 | ||||||||||||
Allowance for borrowed funds used during construction | (33,535 | ) | — | — | (33,535 | ) | ||||||||||
Total | 553,573 | 87,519 | 23,196 | 664,288 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 1,534,148 | (274,493 | ) | (2,922,790 | ) | (1,663,135 | ) | |||||||||
Income taxes | 415,044 | (41,572 | ) | (1,322,914 | ) | (949,441 | ) | |||||||||
CONSOLIDATED NET INCOME (LOSS) | 1,119,104 | (232,921 | ) | (1,599,876 | ) | (713,694 | ) | |||||||||
Preferred dividend requirements of subsidiaries | 15,097 | — | 2,188 | 17,284 | ||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION | $1,104,007 | ($232,921 | ) | ($1,602,064 | ) | ($730,978 | ) | |||||||||
EARNINGS (LOSS) PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $6.17 | ($1.30) | ($8.95) | ($4.08) | ||||||||||||
DILUTED | $6.17 | ($1.30) | ($8.95) | ($4.08) | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 179,073,043 | |||||||||||||||
DILUTED | 179,073,043 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Income Statement | ||||||||||||||||
Twelve Months Ended March 31, 2016 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Electric | $ | 9,132,921 | $ | (71 | ) | $ | — | $ | 9,132,850 | |||||||
Natural gas | 128,847 | — | — | 128,847 | ||||||||||||
Competitive businesses | — | — | 1,941,316 | 1,941,316 | ||||||||||||
Total | 9,261,768 | (71 | ) | 1,941,316 | 11,203,013 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operating and Maintenance: | ||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale | 2,068,783 | (71 | ) | 257,972 | 2,326,684 | |||||||||||
Purchased power | 1,233,523 | 75 | 77,509 | 1,311,107 | ||||||||||||
Nuclear refueling outage expenses | 121,104 | — | 116,574 | 237,678 | ||||||||||||
Other operation and maintenance | 2,401,795 | 14,281 | 900,707 | 3,316,783 | ||||||||||||
Asset write-offs, impairments and related charges | 68,672 | — | 2,043,595 | 2,112,267 | ||||||||||||
Decommissioning | 145,126 | — | 133,875 | 279,001 | ||||||||||||
Taxes other than income taxes | 501,278 | 839 | 109,560 | 611,677 | ||||||||||||
Depreciation and amortization | 1,104,707 | 1,979 | 232,876 | 1,339,562 | ||||||||||||
Other regulatory charges (credits) - net | 166,006 | — | — | 166,006 | ||||||||||||
Total | 7,810,994 | 17,103 | 3,872,668 | 11,700,765 | ||||||||||||
Gain on sale of asset | — | — | 154,037 | 154,037 | ||||||||||||
OPERATING INCOME (LOSS) | 1,450,774 | (17,174 | ) | (1,777,315 | ) | (343,715 | ) | |||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||||||
Allowance for equity funds used during construction | 59,101 | — | — | 59,101 | ||||||||||||
Interest and investment income | 181,059 | (154,677 | ) | 125,300 | 151,682 | |||||||||||
Miscellaneous - net | (27,071 | ) | (11,734 | ) | (58,758 | ) | (97,563 | ) | ||||||||
Total | 213,089 | (166,411 | ) | 66,542 | 113,220 | |||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 574,291 | 76,304 | 26,975 | 677,570 | ||||||||||||
Allowance for borrowed funds used during construction | (30,192 | ) | — | — | (30,192 | ) | ||||||||||
Total | 544,099 | 76,304 | 26,975 | 647,378 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 1,119,764 | (259,889 | ) | (1,737,748 | ) | (877,873 | ) | |||||||||
Income taxes | 33,347 | (58,584 | ) | (628,216 | ) | (653,453 | ) | |||||||||
CONSOLIDATED NET INCOME (LOSS) | 1,086,417 | (201,305 | ) | (1,109,532 | ) | (224,420 | ) | |||||||||
Preferred dividend requirements of subsidiaries | 18,038 | — | 2,188 | 20,226 | ||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION | $1,068,379 | ($201,305 | ) | ($1,111,720 | ) | ($244,646 | ) | |||||||||
EARNINGS (LOSS) PER AVERAGE COMMON SHARE: | ||||||||||||||||
BASIC | $5.97 | ($1.13) | ($6.21) | ($1.37) | ||||||||||||
DILUTED | $5.97 | ($1.13) | ($6.21) | ($1.37) | ||||||||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 178,909,039 | |||||||||||||||
DILUTED | 178,909,039 | |||||||||||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||
Consolidated Cash Flow Statement | ||||||||||||
Three Months Ended March 31, 2017 vs. 2016 | ||||||||||||
(Dollars in thousands) | ||||||||||||
(Unaudited) | ||||||||||||
2017 | 2016 | Variance | ||||||||||
OPERATING ACTIVITIES | ||||||||||||
Consolidated net income | $86,051 | $235,242 | ($149,191 | ) | ||||||||
Adjustments to reconcile consolidated net income to net cash | ||||||||||||
flow provided by operating activities: | ||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 531,373 | 500,248 | 31,125 | |||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued | 16,497 | 75,415 | (58,918 | ) | ||||||||
Asset write-offs, impairments and related charges | 145,026 | 7,361 | 137,665 | |||||||||
Gain on sale of assets | (16,270 | ) | — | (16,270 | ) | |||||||
Changes in working capital: | ||||||||||||
Receivables | 156,201 | 76,532 | 79,669 | |||||||||
Fuel inventory | 6,465 | (9,089 | ) | 15,554 | ||||||||
Accounts payable | (47,682 | ) | (67,364 | ) | 19,682 | |||||||
Prepaid taxes and taxes accrued | (58,832 | ) | (15,996 | ) | (42,836 | ) | ||||||
Interest accrued | (13,921 | ) | (27,535 | ) | 13,614 | |||||||
Deferred fuel costs | (7,389 | ) | 97,566 | (104,955 | ) | |||||||
Other working capital accounts | (7,324 | ) | (95,291 | ) | 87,967 | |||||||
Changes in provisions for estimated losses | (4,031 | ) | (3,968 | ) | (63 | ) | ||||||
Changes in other regulatory assets | 47,497 | 56,047 | (8,550 | ) | ||||||||
Changes in other regulatory liabilities | (18,324 | ) | 18,735 | (37,059 | ) | |||||||
Changes in pensions and other postretirement liabilities | (86,430 | ) | (89,046 | ) | 2,616 | |||||||
Other | (199,514 | ) | (226,036 | ) | 26,522 | |||||||
Net cash flow provided by operating activities | 529,393 | 532,821 | (3,428 | ) | ||||||||
INVESTING ACTIVITIES | ||||||||||||
Construction/capital expenditures | (794,448 | ) | (636,011 | ) | (158,437 | ) | ||||||
Allowance for equity funds used during construction | 19,254 | 19,107 | 147 | |||||||||
Nuclear fuel purchases | (137,613 | ) | (85,819 | ) | (51,794 | ) | ||||||
Payment for purchase of plant | — | (947,778 | ) | 947,778 | ||||||||
Proceeds from sale of assets | 100,000 | — | 100,000 | |||||||||
Insurance proceeds received for property damages | 20,909 | — | 20,909 | |||||||||
Changes in securitization account | (963 | ) | (1,399 | ) | 436 | |||||||
Payments to storm reserve escrow account | (480 | ) | (367 | ) | (113 | ) | ||||||
Receipts from storm reserve escrow account | 8,836 | — | 8,836 | |||||||||
Increase in other investments | (10,377 | ) | (196,509 | ) | 186,132 | |||||||
Litigation proceeds for reimbursement of spent nuclear fuel storage costs | 25,493 | — | 25,493 | |||||||||
Proceeds from nuclear decommissioning trust fund sales | 513,750 | 729,414 | (215,664 | ) | ||||||||
Investment in nuclear decommissioning trust funds | (556,161 | ) | (758,665 | ) | 202,504 | |||||||
Net cash flow used in investing activities | (811,800 | ) | (1,878,027 | ) | 1,066,227 | |||||||
FINANCING ACTIVITIES | ||||||||||||
Proceeds from the issuance of: | ||||||||||||
Long-term debt | 236,198 | 2,869,808 | (2,633,610 | ) | ||||||||
Treasury stock | 2,448 | 5,787 | (3,339 | ) | ||||||||
Retirement of long-term debt | (811,690 | ) | (1,903,670 | ) | 1,091,980 | |||||||
Changes in credit borrowings and commercial paper - net | 908,378 | 271,730 | 636,648 | |||||||||
Other | 1,810 | (644 | ) | 2,454 | ||||||||
Dividends paid: | ||||||||||||
Common stock | (156,073 | ) | (151,839 | ) | (4,234 | ) | ||||||
Preferred stock | (3,446 | ) | (5,276 | ) | 1,830 | |||||||
Net cash flow provided by financing activities | 177,625 | 1,085,896 | (908,271 | ) | ||||||||
Net decrease in cash and cash equivalents | (104,782 | ) | (259,310 | ) | 154,528 | |||||||
Cash and cash equivalents at beginning of period | 1,187,844 | 1,350,961 | (163,117 | ) | ||||||||
Cash and cash equivalents at end of period | $1,083,062 | $1,091,651 | ($8,589 | ) | ||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
Cash paid (received) during the period for: | ||||||||||||
Interest - net of amount capitalized | $178,134 | $251,305 | ($73,171) | |||||||||
Income taxes | ($18,044) | $26,382 | ($44,426) | |||||||||
Entergy Corporation | ||||||||||||
Consolidated Cash Flow Statement | ||||||||||||
Twelve Months Ended March 31, 2017 vs. 2016 | ||||||||||||
(Dollars in thousands) | ||||||||||||
(Unaudited) | ||||||||||||
2017 | 2016 | Variance | ||||||||||
OPERATING ACTIVITIES | ||||||||||||
Consolidated net income (loss) | ($713,694 | ) | ($224,420 | ) | ($489,274 | ) | ||||||
Adjustments to reconcile consolidated net income (loss) to net cash | ||||||||||||
flow provided by operating activities: | ||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 2,154,416 | 2,091,476 | 62,940 | |||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued | (895,175 | ) | (840,667 | ) | (54,508 | ) | ||||||
Asset write-offs, impairments and related charges | 2,973,302 | 2,112,267 | 861,035 | |||||||||
Gain on sale of asset | (16,270 | ) | (154,037 | ) | 137,767 | |||||||
Changes in working capital: | ||||||||||||
Receivables | (17,306 | ) | 92,396 | (109,702 | ) | |||||||
Fuel inventory | 53,764 | 1,088 | 52,676 | |||||||||
Accounts payable | 194,103 | (48,875 | ) | 242,978 | ||||||||
Prepaid taxes and taxes accrued | (71,799 | ) | 133,914 | (205,713 | ) | |||||||
Interest accrued | 6,279 | 3,571 | 2,708 | |||||||||
Deferred fuel costs | (346,851 | ) | 315,020 | (661,871 | ) | |||||||
Other working capital accounts | 119,164 | (118,373 | ) | 237,537 | ||||||||
Changes in provisions for estimated losses | 20,842 | 37,264 | (16,422 | ) | ||||||||
Changes in other regulatory assets | (57,019 | ) | 225,282 | (282,301 | ) | |||||||
Changes in other regulatory liabilities | 120,972 | 64,119 | 56,853 | |||||||||
Changes in pensions and other postretirement liabilities | (134,303 | ) | (482,955 | ) | 348,652 | |||||||
Other | (395,154 | ) | 5,977 | (401,131 | ) | |||||||
Net cash flow provided by operating activities | 2,995,271 | 3,213,047 | (217,776 | ) | ||||||||
INVESTING ACTIVITIES | ||||||||||||
Construction/capital expenditures | (2,938,659 | ) | (2,603,913 | ) | (334,746 | ) | ||||||
Allowance for equity funds used during construction | 68,492 | 59,665 | 8,827 | |||||||||
Nuclear fuel purchases | (366,500 | ) | (483,031 | ) | 116,531 | |||||||
Payment for purchase of plant | (1,551 | ) | (947,778 | ) | 946,227 | |||||||
Proceeds from sale of assets | 100,000 | 487,406 | (387,406 | ) | ||||||||
Insurance proceeds received for property damages | 41,877 | 11,654 | 30,223 | |||||||||
Changes in securitization account | 4,443 | (6,954 | ) | 11,397 | ||||||||
Payments to storm reserve escrow account | (1,657 | ) | (67,665 | ) | 66,008 | |||||||
Receipts from storm reserve escrow account | 8,836 | 5,916 | 2,920 | |||||||||
Decrease (increase) in other investments | 195,187 | (196,216 | ) | 391,403 | ||||||||
Litigation proceeds for reimbursement of spent nuclear fuel storage costs | 194,578 | 18,296 | 176,282 | |||||||||
Proceeds from nuclear decommissioning trust fund sales | 2,193,256 | 2,728,749 | (535,493 | ) | ||||||||
Investment in nuclear decommissioning trust funds | (2,282,123 | ) | (2,793,059 | ) | 510,936 | |||||||
Net cash flow used in investing activities | (2,783,821 | ) | (3,786,930 | ) | 1,003,109 | |||||||
FINANCING ACTIVITIES | ||||||||||||
Proceeds from the issuance of: | ||||||||||||
Long-term debt | 4,166,948 | 5,883,932 | (1,716,984 | ) | ||||||||
Preferred stock of subsidiary | — | 107,426 | (107,426 | ) | ||||||||
Treasury stock | 29,775 | 6,997 | 22,778 | |||||||||
Retirement of long-term debt | (4,219,344 | ) | (4,679,930 | ) | 460,586 | |||||||
Repurchase of common stock | — | (74,729 | ) | 74,729 | ||||||||
Repurchase / redemption of preferred stock | (115,283 | ) | (94,285 | ) | (20,998 | ) | ||||||
Changes in credit borrowings and commercial paper - net | 557,311 | (42,329 | ) | 599,640 | ||||||||
Other | (4,418 | ) | (459 | ) | (3,959 | ) | ||||||
Dividends paid: | ||||||||||||
Common stock | (616,069 | ) | (601,480 | ) | (14,589 | ) | ||||||
Preferred stock | (18,959 | ) | (20,155 | ) | 1,196 | |||||||
Net cash flow provided by (used in) financing activities | (220,039 | ) | 484,988 | (705,027 | ) | |||||||
Net decrease in cash and cash equivalents | (8,589 | ) | (88,895 | ) | 80,306 | |||||||
Cash and cash equivalents at beginning of period | 1,091,651 | 1,180,546 | (88,895 | ) | ||||||||
Cash and cash equivalents at end of period | $1,083,062 | $1,091,651 | ($8,589 | ) | ||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
Cash paid during the period for: | ||||||||||||
Interest - net of amount capitalized | $673,608 | $711,149 | ($37,541 | ) | ||||||||
Income taxes | $50,891 | $64,052 | ($13,161 | ) | ||||||||